Posts
Image via Wikipedia http://market-ticker.org/archives/2530-CBO-Director-A-Somber-Warning.html
by nospam@example.com (Karl Denninger)File this in the "no, really?" box:
With U.S. government debt already at a level that is high by historical standards, and the prospect that, under current policies, federal debt would continue to grow, it is possible that interest rates might rise gradually as investors’ confidence in the U.S. government’s finances declined, giving legislators sufficient time to make policy choices that could avert a crisis. It is also possible, however, that investors would lose confidence abruptly and interest rates on government debt would rise sharply, as evidenced by the experiences of other countries.
So let's see.... if you buy bonds today there's a chance you could lose some of your money, or there's a chance you could lose a whole lot of your money.
That sounds comforting, doesn't it?
But it's the next sentence that ought to make you sit up in your chair:
Unfortunately, there is no way to predict with any confidence whether and when such a crisis might occur in the United States.
Right.
In one sentence: Wake the hell up America. 
No comments:
Post a Comment